Cash out or HELOC on primary residence

5 Replies

Hello BP family. Which banks are doing HELOC now? I've called a few the banks I know but they are not doing at this moment. Looking for HELOC for my primary residence in Louisiana. Or will cash out refi be better choice? Which is faster to get cash? Just did cash out refi my rentals and took around 6 weeks.

Hey Guillermo, great question!

First off you need to figure out how much equity you currently have for a HELOC. Typically processing takes 2-4 weeks. Then how much you need to borrow, what your current interest rate is, and what kind of term you want.

The best options for HELOCs are:

https://www.figure.com/affilia...

https://www.bankofamerica.com/...

https://www.penfed.org/home-eq...

As for a cash-out refi, you should compare the rates on the refi and HELOC respectively. These often take all the way up to 8 weeks to complete. Depending on the figures you come up with I'm hoping this advice helps.

Good luck! 

Originally posted by @Brian Gerlach :

@Guillermo Oyola imo the answer lies in what you plan to do with the capital you access, ie what is your investing strategy with those funds? Buy/hold, Flip, Brrrr, etc?

I plan on doing BRRRR. Looking at a property now and numbers make sense. Just need to offer cash to the buyer who is in distress.